EUR/USD is settling in a slightly higher range after the initial fall on the Portuguese fears. Will it pick a new direction? Here’s a quick update on technicals, fundamentals and community trends. EUR/USD Technicals
- Asian session: Narrow range between 1.2920 and 1.2970.
- Further levels in both directions: Below 1.2920, 1.28, 1.2722, 1.2587.
- Above 1.2970, 1.3080, 1.3180, 1.3267, 1.3334, 1.3440, 1.3576, 1.37, 1.3786, 1.3950 and 1.4030.
- 1.2970 was the lowest level in 4 months, and and now serves as resistance.
- Significant support is only at 1.2722.
Euro/Dollar in range- click to enlarge graph
EUR/USD Fundamentals –
- 13:30 US FOMC memberCharles Plosser talks.
- 15:00 US IBD/TIPP Economic Optimism. Exp. 47.1 points.
- 19:00 US FOMC member Narayana Kocherlakota talks.
* All times are GMT. For more events later in the week, see the EUR/USD forecast.
- A bailout for Portugal is high on the agenda – the Euro-zone’s biggest countries push the small nation to take a bailout. 7% for ten note yields is marked as the no return points.
- US Non-Farm Payrolls disappointed on Friday, but it didn’t cheer the Euro.
- Inflation is becoming problematic for Europe. This comes as employment is still high. Double trouble for Europe. Trichet isn’t likely to raise the rate later in the week.
- Japan and China talk of buying bonds of Euro zone countries – this is probably quite limited.
- Trichet won’t be the hero to make the difference regarding the debt crisis.
Currensee Community: 63% are long , 37% are short, more than yesterday. These are 1333 open positions in real accounts trading this pair at the moment.Get the 5 most predictable currency pairs